gerri: the federal reserve said an internal website was briefly breached by hackers today. unbelievable. i had ipad stolen. have you ever been a victim of identity theft? 27% of you said yes, almost a third. finally tonight, ashley judd is getting a taste of what it's like to run for office. considering a run for u.s. senate seat in kentucky next year going up against republican leader mitch mcconnell. cofounded by g.o.p. strategist karl rove already running negative ads against her. during the last election she appeared in ads endorsing the president. also using clips where she says obama carries great and obama is doing brilliant job. not exactly the kind of things that will help her in a state that voted overwhelmingly republican in the last election.

she needs to get that straight if she is serious about running. that is my two cents more. coming up friday, got ready for something really, really exciting. a weekly segment focusing on top designerand trends in fashion and entertainment. this friday i will be sitting down with the fox business exclusive interview with supermodel and entrepreneur who will share some of the biggest secrets in fashion. you don't want to miss that.k ya great night, we will see you back here tomorrow. lou: good evening, everybody. president obama today stepped up his campaign to avoid the consequences of sequestration. an idea that originated in the white house. republicans upon the president's new round of demands delay sequestration for months, nothing more than a play for more tax increases. hollywood a-list or bruce

willis: not those who would take away our guns offering a stern message for the president. and the nations bigge red state going after the biggest blue state all about drumming up business. we will show you how to score this battle in snakes "chalk talk." with an administration that avoids consequences of their public policy decisions. this time president obama asking congress to bail him out of the so-called defense sequester, nearly $500 billion cut in funding to our defense department that will cost thousands of jobs and undoubtedly weaken our national security. here is jay carney offering a bag and consuming answer as he triesto shift the responsibility for action from the president to congress. >> the president was clear he believes if we don't have the

time or the are not inclined in the short term to accept the offer that he put forward that would resolve the sequester and then some with deficit reduction that we should at the very least take action for temporary buydown just as we did at the end of the year of the sequester to prevent the terrible impact of the sequester. lou: a panel trying to diagram the sequester. he points out the house has already passed two separate bills to replace the sequester but both of those bills are allowed to die and demographically controlled senate. he has had it with the obama way of doing business that he is content to allow the white house bipartisan sequester to take affect on march 1.

>> let me make clear i don't like the sequester, i think it is taking acts of re government. >> would you delay the impose a sequester? >> that is right, i will. lou: meanwhile also headed with the obama way infuriated with the white house gag order on top level officials muscling those officials preventing them from talking with her committee on unscheduled spending cuts. maryland democrat and chairman of the appropriations committee said high-level cabinet members have been instructed not to talk unless their words are cleared by the office of management and budget. as a result, the senator plans to call officials from treasury, health and human services department of education and homeland security, all to testify about those proposed cuts as early as next week.

no gag order on the secretary. the white house rolling out the big gun to boost the call for delay in implementing the sequester. the pentagon later i quit the request to stop the march first defense cuts from becoming reity, but senate and house republicans have altogether different view. fox news chief legal correspondent has our report. >> republicans made a pair of big statements today. the house g.o.p. today passed a measure: the president dismissed to congress by april 1 a budget that balances in 10 years. increasingly frustrated that the solution to decades of deficit spending is more taxation. >> the president doesn't believe we have a spending problem. he believes spending causes economic growth. if that were true, the economy today would be thriving. it isn't thriving.

washington has to deal with its spending problem. i watched him kick the can down the road, i have had enough of it. >> a day after they dismissed the suggestion to again postpone tens of billions of dollars of mandatory spending cuts and other departments blooming under what is sequestration the defense secretary renewed his dire warnings. >> my greatest concern today is that we are putting our national security at risk by lurching from budget crisis to budget crisis. >> downgrading the entire civilian workforce and freeze pay for members of congress. >> this is a way of doing it without cutting defense system without cuing domestic and without raising taxes. >> they plan me with the joint chiefs to show how dangerous it can be.

the cuts will be. lou: thank you. it is of course no accident the pentagon chose today to focus on the specter of dramatic cuts through defense spending. the pentagon announcing it is scaling back the navy persia gulf residents from two groups to one. jennifer griffin has the latest for us now from the pentagon. >> good evening. this is the first concrete find the budget uncertainty is going to have a real impact on national security at a time when tensions are high with iran over the nuclear program u.s. has had a policy of having aircraft carriers in the gulf for the past two years. they will replace the u.s. senate. facing budget uncertainty including increasing resolution

and a looming potential for across-the-board sequestration cuts u.s. navy made this request to the secretary and he approved the navy to reverse the deployment orders of the uss truman at the last moment. lou: what does this mean f the families on the truman? >> it wreaks havoc on their lives. some have left their least dropped. supposed to leave this friday, so this is a last-minute reversal by the pentagon. they say it could be in the gulf in two weeks time if there were an emergency that would take that long to go from northern virginia. they're going nuts trying to plan for sequestration, something they were told not to plan for and not even talk about until two and a half weeks ago. lou: we have known about sequestration is the best we can do is hope that all the discomfort and disorder created

for the families and those serving on the truman isn't because of some sort of political ploy being brought up by this white house. thank you so much, we appreciate it. fox news national security correspondent jennifer griffin. turning now to the battle over immigration reform, a new poll shows 83% supports stricter border control. 55% favor a path to citizenship for illegal immigrants, only 41% oppose. there was no question of border security should be a path to citizenship, but our next guest shares the hearings on the issue and several other immigration proposals and will have a strong voice in it all. he is a member of the judiciary committee, chairman of the subcommittee on immigration and border security and it is good to have you with us,

congressman. >> thank you. lou: the bipartisan gang of eight has proceeded with its work. the committee has began its process. if you will, give us a sense of your hope or skepticism about a result at this point. >> was encouraged by hearing this week especially with the tone. i was not around in 2006 or 2007 when i last tried to solve our immigration quagmire, but i was very encouraged with the tone of the hearing. make no mistake, there are some stark differences. not to say they are irreconcilable, but there are strong differences. you mentioned in the poll, and he is a very charming, engaging, smart man. but we also elicited from him

the only path to legal status that will satisfy him his full pledge to citizenship that he represented that is a compromise. i don't know whether it is a compromise between because no one is advocating for full-fledged citizenship without a background check so no matter how arduous the path to citizenship, there will be some folks who don't want all of the 11 million to enjoy the full citizenship rights. and frankly, some of the 11 million don't have any desire to be citizens, they just want to work in a legal way, that will be something we have to reconcile. the biggest thing we have to reconcile is this. it has a very high political action, they remember 1986, they remember they were told we will do this amnesty one-time, never be an issue again, less conversation ever have as a country, we will secure the border and have verification and

we didn't do either one of them. unless the border is secure and unless we have real employment verification, it is r t that much used talking about the path to legal status. lou: what is your reaction when you hear senator chuck schumer say it is the judgment of the gang of eight that janet napolitano should be the one who arbitrates whether or not the border is secure or not having already about face exactly that, what is your reaction to an employee of the president would be the one pulling the trigger, if you will. >> you are trying to get me in trouble, and i'm going to go ahead -- lou: i am trying to get to the truth, ptner. >> janet napolitano testified before judiciary and oversight that we currently have operational control on the board. notwithstanding the fact ak-47

went to armed mexican drug cartels and notwithstanding the fact a kilo of cocaine is cheaper today than it was when i was a federal prosecutor so we have drugs coming from mexico into the united states, ak-47 going to mexico and she wants me to believe we have operational control of the border. i love marco rubio and i love others, but janet napolitano is not going to be president decides whether or not we have full-fledged border security. the house was born at night, but not last night. lou: talking about 2006, 2007 when they move forward with that legislation comprehensive immigration reform. the most perfect mistake they made was trying to gain the american people. civility or no, if this is an early indicator on the part of senator schumer, who has been

constructive and positive in many of the talks certainly with the talks i've had on illegal immigration and border security, if that is an early indication they will game the system, it will be a betrayal of the interest of those in this country illegally who would all seek to move forward with rational effective humane changes on immigration laws, but that is spiriting to see that occurred even if it s recaptured. >> i kind of knew it, if you and i were playing bridge, that is his opening bid, we will have the head of homeland security certify it. our response would be we will have a commission of all law-enforcement officers, border state governors and others and we will have triggers and

they're going to be economic triggers. lou: senator rubio points o out was the concept under which he signed at least. congressman, we're comforted by the fact you will have a strong role in all this and we appreciate you being with us here tonight. >> thank you. lou: much more on the battle to fix our broken legal and illegal immigration throughout this broadcast. texas versus california, texas going after californian gold, a red state versus blue state battle. who is winning? that is tonight's "chalk talk." y can't our political leaders just be honest about our economy? wall street legend with the answers next. ♪

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lou: the economic consequences of the sequester have president obama in the white house trying t find anyway in the world congress may bail him out. more trying to talk about this administration trying to avoid consequences, but first, it was an unremarkable day on wall street so of course i will remark the dow rising seven-point, s&p up a point, the nasdaq lower by three, 3.5 billion shares traded on the big board, the bond market prices modestly setting rates lower, treasury 10-year yield back to 1.97%. the commodity market, oil flat, called up by 30 per ounce, and our next guest says every american knows its federal spending is out of control. the fed is printing money so

fast there is a constant hum. because of all this, republicans are steadfast preaching economic growth, no further tax increases and somehow come up with a budget that will lead to future balance. joining us now from other than wall street legend, chairman of the reagan gold commission, author of the book "the true gold standard." and it is fallacious because the state of virginia moving to create new tinder out of concern on the weekend monetary policy. >> is a wonderful event. making gold and silver coin, legal tender in their states. this is not going to be able to overturn federal legislation, but they argue under article one

section eight and 10 of the u.s. constitution that the only constitutional money is a dollar backed by gold. lou: you look out to those cameras, millions of people whose eyes glaze over when you say gold, my gosh. but the reality is, this is it removed in utah to begin and now virginia. you're actually seeing state legislature, you may see this differently, but state legislatures beginning to express their constituents views. more than just a little fed up the direction this nation is going, the problems we are not confronting and resolving but rather perpetuating and starting to express themselves in any way they can. what do you make of it? >> constituents, the people who have been expropriated of their purchasing power, their wages

and their savings are the middle classes and working people. working people who speculate on wall street somehow stay ahead of inflation. and generally ahead of texas so what we're talking about is a middle-class policy to stabilize the value of the currency. how did redo that when we were 13 impoverished colonies by the sea? we preserve the purchasing power of the dollar, for everybody working for a living until 1914 and 1971, the last 40 years the dollar lost approximately 85% of its purchasing power, why not gold currency? lou: we are watching right now what looks too many people to be a currency war that is already

being waged in earnest certainly between japan and the united states, china, the united states and one set of participation in new front with europe. what do you expect to be the outcome? >> protectionism, controls, we have been here before. the depression was set off by currency wars. set off by the collapse of the reserve currency for the british pound and the u.s. dollar. of course led ultimately to the second world war. currency wars of the storm cloud which suggest there are much bigger arguments among the nation swimming. lou: at this point are you more optimistic about the growth or less? >> i am less. the stock market istraveling on the ben bernanke push.

lou: and that is rather impressive at this point up 6.5% so far this year. the year is young, the number impressive as are you as always. thank you for being here. >> thank you. lou: up next to my brand-new study shows how blatantly bias the big three networks are on the issue of come a lot of issues, but so this might will focus on gun control. you will not believe it. and bruce willis says if you change one law, why would they change all the rights? and jerry brown, rick perry are fighting for business as they say in texas. we will show you exactly who is winning this fight, and it ain't winning this fight, and it ain't fair. this is $100,000. winning this fight, and it ain't fair. we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime.

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lou: we thought you'd be gerrilou:e thought you'd be interested to hear the heated

debate over the state of california and the red state of the great state of texas. listen to the new radio ad the governor of texas rick perry is airing in california. >> building a business is tough. building a busins in california is near impossible. come check out texas. lou: this battle is going. now listen to governor jerry brown's retort. >> come to california because this is where it is. not going to those places in that state. i say come on come a lot of these texans who come here don't go back. who would want to spend their summers in 110 degrees heat inside some kind of fossil fueled air-contioner? not a smart way to go. lou: there's no reason to insult lubbock i was born in

childress texas for full disclosure. which is the best date for business? on employe narrate in california, you have work to do, nine point* 8 percent unemployment. jobs added last year, jobs created, 220, 226,000. but texas, 261,000, and we had to put another check mark right over there. annual gdp growth, california 2%, out doing the national average, that is for sure, but texas is 3.3%.

and california has an income tax so they will win this one. california income tax is 13.3%. you heard me right, 13.3%. texas income tax rate for individuals is 0%. and again, another check mark. corporate income tax, california 8.84%. don't ask me why they want .4 in that. but there it is. texas, to keep it simple, zero, another check mark for texas. dead, california $75. that is a pretty good chunk of change. texas, $15 billion. again, another check mark.

the poverty rate, california has the highest poverty rate in the country for crying out loud, 23.5%. 23.5%. again, the highest in the nation. texas, .5%. i should have made that lower on the board. graduation rates, california not too bad, 76% graduation rates in california, doesn't ke up with texas, 86% graduation rates. the score, 8-0. california zero in that contest. governor brown, think there is a clear message here. don't mess with texas. a new coalition, iran with a bold strategy saying it has

already gone nuclear. gun violence in entertainment is the highest caliber. ben willis on the second amendment. president obama preaches fairness and equality putting divides and racial and economic issues. our next guest says there is a cultural divide. author of "coming apart" joins us next.

lou: a new study shows mainstream liberal media probably behind the president's push for gun control. media research center looked at all stories on the big three news network's, and news departments following the newtown shooting. the study found pushing for gun-control outnumbering those from the margin of 99

/ 12. cbs was the most vigorous in its position airing 44 antigun stories and just to supporting gun rights. anti-gun democrats are hard work to have introduced legislation that gun owners have to buy a liability insurance for any damage caused by their firearm also massachusetts, pennsylvania and new york that no state has passed a bill into law. what about the victims of the then prime do not permit second amendment to be enforced. bruce willis reed feuding the liberal hollywood community and said this "

you can start to pick apart anything o of the bill of rights without thinking it will all become undone. if you take one out or change one of then why wouldn't they take all your rights away from you? promoting his movie beginning for every 14, i think i will go see that after hearing his views. america maintained a national identity despite differences income inequality but says we have racial level of separation unlike anything experience before. joining us to talk about these experiences we have charles murray author of the book, coming apart. and just released in paperback.

start with the country divided, of polarized, alienation that the social scientist could write about we live it so thoroughly. >> it is out right antagonist to have resentment with maine's americans with those people on top of running the country with a different set of rules. >> it is interesting they play around those issues and but there is some hard truth. >> is not income equality. people so autoparts but that is not the source of the antagonism. it is people who have the inside track also $150,000

regulator mattel's people how to live their lives with no understanding. >> load at the white middle-class what happened to the american dream, a predominantly white, is there any change of direction? >> look at the 2010 consensus you have an upper-class increasingly living in the culture that is sequestered from the rest of the country provides a look at data it is of god worse over tenures. >> we allow elderly to

living communities, a 55 band older, we don't have families coming together under one roof, a sequester gated communities california or florida, we're not doing a very good job of supporting a family in the sense not financial but restoring some power to society. >> but who sequesters them solve look at that class they have the money to go wherever they want and they have been congregating with everybody else. go to des moines iowa sure you have the upper class, but their neighborhoods are just neighborhoods surrounded by

neighborhoods that are normal. los angeles, california is not the story, and your city, and no. you have a much more severe segregation. lou: with 23 million unemployed looking for work, with comprehenve immigration reform to take guns away from people, and assault on the a second amendment for what the president is trying to do. >> a classic case of a group of people who make the rules to have no bad experiences. it means the availability of nannies, a good yard workers negative consequences? nothing. with gun-control how many

members of upper-class care about guns? they don't own them or go hunting, not civil war reactors, it does not touch a single solitary nerve. lou: but they have bodyguards they don't rely upon themselves. >> it is really, really low. lou: rate cannot recommend the book to highly. thank you. it is available on-line in book stores no. -- now. the host of justice of long our guests tomorrow.

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lou: postal service dropping saturday delivery beginning august, a move that will save $2 billion per year. under the plan packages will still be delivered in post offices open the magazines, and then flex movies will not be delivered it will not helped the postal service finances it lost 16 billion last year. joining us is the "a team."

what do you think about the postal service? it seems like a faint effort. >> frankly i know think anybody will miss them. it is like a track tapes, the service rye live is not that great anyway but i don't think anybody will miss them. lou: the pony express has the time come and gone? >> there will be value, people like mail until the next generation tells us we don't like male. some people may get many through the mail. lou: $16 billion? >> what's another 16 billion?

[laughter] >> with a larger budgetary issues. >> this would not be comprehensive postal service? you can do anything unless you do it all? that is how we got in the mass. >> giving a the fact the president kicked the can down the road. >>. >> but to perpetuate the nonsense as both parties have done the past 30 years when we're in the cul-de-sac of history putting up with fools. >> i am with lou dobbs. >> closed down the government or the postal service or both. >> and like to see political parties to have courage to talk honestly.

>> but there is no incentive. more americans. lou: then put them in front of politicians. >> making real plans with a >> making real plans with a realistic i'm lorenzo. i work for 47 different companies. well, technically i work for one. that company, thunited states postal service®, works for thousands of home businesses. because at usps.com®, you can pay, print and have your packages picked up for free. i can even drop off free boxes. i wear a lot of hats. well, technically i wear one. the u.s. postal service®, no business too small.

lou: we are backed turning to euchres rock, will chuck

hegel go forward, and missing deadlines to file papers it looks like the nomination may be crashing. >> i hopeo. the position he has taken is sympathetic to what i believe is important. a statement about containment is wrong if there is ethical issues it is good if the president pulls and out very quickly. lou: and we are lucky john brennan that he can kill an american anywhere that his nomination goes forward tomorrow. >> it probably will there's not enough time to rally the forces and people have to pick and choose to let john

kerry slide through but they got rid of susan rice. i think chuck hegel on his own will step aside. but how many can we block and get away with before looks bad? soto the president to do a better job of getting nominees. lou: chris rock talking about the first lady and the president mommy and daddy. mrs. is getting to free. >> mom and dad? had you refer to the president as bad? it means the value of the office. he is a mr. president or a matter of first lady. lou: talk about a wonderful

movie, here we go with a sound bite here is secretary panetta with strong words for the president. >> a legislative met this designed to me so bad, so bad that no one in there right mind would let it happen. for those of you who have seen blazing saddles, this scene of the share of putting the gun to his head to establish law and order. that is sequestration. lou: that is strong. >> wish leon panetta it worked in the clinton administration would say it is a repudiation of chuck a goal and the president's defense policies.

lou: sequestration is the president's deal. >> it is rotten. lou: how do grown men and women representing the constituents on capitol hill come up with the nonsense? >> the president defended it i will fight to the death anybody do tries to stop the cuts, now the republicans call his bluff. the republicans need to stick to their guns. lou: the president had sequestration stuffed up his nose. >> but leon panetta is held a major policy roles and has relationships of all side of the aisles telling his former boss to take a hike. not so good.

>> budget cuts and in panama reform. >> comprehensive defense, entitlements, and on discretionary defense, a tax reform do it all white blossoms and. lou: wise the president absolutely adamantly opposed to do the one thing to cement his legacy to do these demonstrably necessary thing to clean up fiscal policies. >> here is not committed did to a view. lou: nation surviving? >> redistribution, he told you that and ran on that. lou: there will be no money to redistribute. >> he only wants the sexy issues when somebody looks up the legacy in 50 years.

>> she is right also muddle through. lou: i am thinking democrats and republicans don't like and republicans don't like to work very hard. this is $100,000.

and republicans don't like to work very hard. we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally. ally bank. your money needs an ally.